Let the market demand for widgets be given by P = 50 – Q/20 and let the average and marginal cost of production be constant at AC = MC = $10. a. Find the equilibrium price, quantity, and amount of consumer surplus if the market for widgets were perfectly competitive. b. Find the equilibrium price, quantity, profit, amount of consumer surplus, and amount of deadweight loss if the market for widgets were a pure monopoly.
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